Air Products Reshuffles Hydrogen Goals Amid Policy Shift
Allentown, Tuesday, 11 March 2025.
In an unexpected turn, Air Products and Chemicals halts major US hydrogen projects due to new leadership and shifting energy policies. This grab-the-popcorn moment reshapes hydrogen’s future landscape.
Leadership Shake-up Triggers Project Cancellations
I’m watching a dramatic shift unfold at Air Products and Chemicals, where new CEO Eduardo Menezes has wasted no time reshaping the company’s direction. Following the departure of longtime CEO Seifi Ghasemi, Menezes has already cancelled three major US projects: a green hydrogen plant in New York, a hydrogen supply agreement for sustainable aviation fuel in California, and a carbon monoxide plant in Texas [1].
Market Context and Industry Impact
This strategic pivot comes at a fascinating time in the hydrogen market’s evolution. Currently valued at approximately $200 billion, the global hydrogen sector is witnessing a significant transition from traditional ‘gray hydrogen’ to greener alternatives [2]. What makes Air Products’ decision particularly intriguing is its timing - the market is projected to reach $700 billion by 2040, with hydrogen potentially meeting up to 24% of global energy demand by 2050 [2].
Scale of Industry Transformation
To put these changes in perspective, I’m looking at some remarkable numbers: annual hydrogen production is expected to surge from today’s 90 million tonnes to between 500-700 million tonnes by 2050 [2]. The industry has announced over $300 billion in hydrogen projects globally through 2024 [2], making Air Products’ pullback all the more significant against this backdrop of massive expansion.
Future Outlook
While Air Products adjusts its US strategy, the broader hydrogen sector continues to evolve. The European Union’s ambitious plan to install 40 GW of electrolyzer capacity by 2030 [2] and expected cost reductions of 60-80% for green hydrogen by 2030 [2] suggest that despite this corporate reshuffling, the hydrogen economy’s momentum remains strong. However, these developments remind us that the path to a hydrogen-powered future isn’t always straightforward.